Mazoon Leather Company decided to use a multiple predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate chosen is labor hours for Primary Treatment Department and machine-hours for Secondary Treatment Department. The accounting records shows the following estimates made at the beginning of the year: Primary Treatment Secondary Treatment Manufacturing overhead cost $240,000 $ 120,000 Machine-hours 2,000 15,000 Direct labor-hours 6,000 9,000 Direct labor cost $ 60,000 $ 40,000 What predetermined overhead rates would be used in Mazoon Leather for Primary Treatment Department and Secondary Treatment Department, respectively? a. $40 and 300% O b. $40 and $8 C. $4 and 300% d. 400% and $8 e. None of the given answer All the following statements about predetermined overhead rates are correct, EXCEPT: O a. All the given answers are correct. O b. calculated first and then multiplied by total actual units of the allocation base to compu the applied manufacturing overhead costs. O c. calculated by dividing total estimated manufacturing overhead cost by estimated units the allocation base. O d. calculated at the end of the accounting period once the actual amount of manufacturing overhead is known. Oe. based on estimated total manufacturing overhead costs A Company uses a job order costing system and allocates its manufacturing overhead costs based on direct labor costs. The Company's production costs for the year were: direct labor, $80,000; direct materials, $40,000; and factory overhead applied $20,000. The predetermined overhead ra was: a. 50%. b. 400.%. C. 200%. d. 4%. e. 25%. A Company uses a job-order costing system with a single plantwide predetermined overhead r based on labor-hours. The company based its predetermined overhead rate for the current yea total estimated manufacturing overhead cost of $120,000 and 3,000 labor-hours. The job shee Job1112 shows that the number of units produced in this job order is 5 units. This job required labor-hours and incurred direct materials cost of $5,000 and direct labor costs of $15,500. The product cost for Job1112 is: O a. None of the given answers. O b. $40,500 O c. $4,000 O d. $8,100 O e. $28,100 Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $2,000 and the total manufacturing overhead cost is $1,270, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2,850, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) O a. 43 b. None of the given answers O c. 86 O d. 59 e. 75